Quote from sunnyskies:
Well, yes I'm confused. For example I enter when the high of the hammer signal (pattern) is taken out. I don't understand when you enter. Like when you got a hammer that qualifies as the one you want to trade (i think you call that a pattern as opposed to a line), when/how do you actually enter?
Maybe its my writing stlye that confuses you.
Lets try this...
You just told me above that you entered when
high of the hammer signal (pattern) is taken out.
I understand that.
However, if I were to ask how long do you allow for price to take out the high before you consider the price action no longer valid for a Hammer trade...
5mins, 30mins, 3hours or what ???
Are you entering 1 tick above the high, 2 ticks above the high, 3 ticks above the high...what ???
Thus, its not as simple as you say it is in the below quote because I know darn well there's more to your simple trading plan
Therefore, I think you meant your explanation is simple...not your method itself.
Quote from sunnyskies:
...And the trade management is very simplistic, meaning there's a stop equal to the range of the hammer and a profit target of the same size. Nothing else, no breakeven, no trailing.
Now...to equal what you said in your explanation of your entry method...
Here's my entry method again (last time I'll repeat it).
I entered when
price retraces below the close of the bullish hammer signal (pattern) price.
If you don't understand what I've said about my entry method then you cannot possibly understand what you told me about your own simple entry method.
However, I will (again) define some key components of my entry method although you have not yourself...
* I only enter my trade in the first interval that occurs after the pattern signal interval.
* I only enter my trade when I know I can get a lower price (better entry price) in comparison to the pattern signal price.
In other words, my broker execution platform and my realtime data vendor must show prices trading at a lower price (not equal and not above) than the pattern signal price.
If price doesn't retrace in that first interval...no biggie...there's always another trading day (other opportunities).
Once again...if you don't understand the above...I will not spend any more time trying to explain something that means i enter at a lower price below the pattern signal price (ooops...I just said it again).
Quote from sunnyskies:
When you were looking for support (long LowerShadow), why did you look on the 10min and not 5min?
...I changed the 5min interval to a 10min interval to look for any prior long lower shadows that hadn't been filled in by the price action that followed it...
I did look on the 5min chart...there was no support for me there. If there was...I would have used it.
Geesh, I'm already beyond my 20 word limit in explaning a Hammer pattern so I must stop for the night
NihabaAshi
